Revlon to Eliminate at Least 1,000 Jobs

Revlon Inc., the largest U.S. maker of cosmetics sold in discount chains and drugstores, said it will eliminate 1,000 to 1,200 jobs worldwide, or about 7% of its work force, to lower costs as sales slump. The cosmetics company, which is 83%-owned by billionaire investor Ronald Perelman, said the cuts are part of the restructuring it announced in October. Revlon said then that it expected fourth-quarter charges of $50 million, but now says the charges will total about $80 million, including $40 million in the fourth quarter. The company expects the restructuring, which includes the closure of three overseas plants, to cut costs by $30 million to $40 million a year, more than it anticipated in October. The seller of Revlon, ColorStay and Almay makeup said the costs savings will ensure that it meets analysts’ consensus earnings forecasts of $1.55 a share in 1999. Revlon has blamed its drop in sales on weak economies in Asia, Russia and Latin America, as well as delays in unveiling new products and consolidation in the U.S. drugstore industry. New York-based Revlon’s stock fell 44 cents to close at $18.50 on the NYSE.